Viewpoints
Opinion

Who Sets the Prices for Goods?

Who Sets the Prices for Goods?
marekuliasz/Shutterstock
|Updated:
0:00
Commentary

Individuals are often presented as if a value scale is hardwired in their heads. Allegedly, this value scale remains the same all the time. As a result, this value scale supposedly instructs individuals in the selection of goods. Were that the case, then it makes sense to attempt to extract this value scale either by means of questionnaires or various psychological tests. Once the value scale is extracted, social scientists could establish how to allocate scarce resources in the most efficient way.

Frank Shostak
Frank Shostak
Author
Frank Shostak, Ph.D., is an associated scholar of the Mises Institute. His consulting firm, Applied Austrian School Economics, provides in-depth assessments and reports of financial markets and global economies. He has taught at the University of Pretoria and the Graduate Business School at Witwatersrand University.